During the Coronavirus pandemic, it is crucial for any business to keep their finances on track. Here our team of chartered accountants have some ways you can do this. If you need any further advice, please do not hesitate to get in touch with our team. HMRC have provided lots of resources and help available to your business and we urge you to keep up-to-date with all of the new information they provide.
Look at your budget
Even if you can work at home without too much disruption and can expect your usual salary to come in, there could be some extra costs to consider. Online shopping has become very simple, and ordering essential supplies and food is easy – and possibly too easy. You might think you’re spending less because you’re not going out for meals and entertainment right now. But you may be spending more than you realise.
Delivery services make it easy to buy practically anything online, from food to garden equipment. Are you or your family ordering without considering the costs? What about the costs of services, like gym membership, that you cannot use?
See what options you have for recurring charges or fees you’ve already paid.
Look at your emergency fund
Your stay-at-home budget should be less than what you’re used to spending in a typical month. With no travel costs, restaurant or bar bills, theatre tickets or other expenses, costs could be well down. The best use for the spare cash is to build up your emergency savings account. Even when interest rates are low, we recommend that you have enough money set aside to cover six months of your usual living expenses. That reserve could be critical as this crisis unfolds, especially if there’s a sudden emergency such as a vital home repair.
Once the crisis is over, a healthy emergency fund is well worth having, and you can use it as part of your longer term financial planning.
Look at the future
With your immediate needs sorted, it’s time to look at those financial plans. Getting them back on track may mean using some of the extra cash you are building up in your emergency fund – but you will probably need to take some more steps to get all your financial plans moving in the right direction again.
Need more information?
Keeping your finances on track is crucial in surviving the pandemic. We offer a wide range of services and our team of chartered accountants have a wealth of experience in a broad range of sectors, from construction and property to the charity sector. Our team work hard to ensure they create smart and effective tax-efficient solutions for start-ups to optimise growth and help them succeed. If you want to learn more about how the team can help or simply want some advice from a trusted accountant do hesitate to contact us. For more information please do hesitate to contact us on 0161 962 1855. Alternatively you can email us using the form below and we will contact you as soon as possible.
Our fantastic team at A&C Chartered Accountants are here to help.